Beware Utility Scams -- Your Power Will Not Be Shut Off Immediately

James Conca
, ContributorI write about nuclear, energy and the environmentOpinions expressed by Forbes Contributors are their own.

Today, November 16, is the inaugural Utilities United Against Scams Day, a day supported by members of the water, gas and electric industries to form a unified front against scammers. This day is a part of a week-long advocacy and awareness campaign focused on exposing the tactics scammers use to steal money from utility customers and on educating customers about how to protect themselves.

Imagine you are someone who is not aware of these scams, who does not use the internet much, if at all. You get a phone call from someone claiming to be from your utility company. He says calmly that he needs certain financial information, or even a payment right now. If you question or resist, he sternly declares that your power will be shut off immediately.

Many of us would indelicately mention where the caller should go, but many people don’t know about these scams, have not been warned, or just don’t believe that this could occur in America.

Whether by phone, e-mail or in-person communication, the structure is the same for most scams. The perpetrators target vulnerable populations, especially the elderly who are not aware of the recent tremendous increase in technology and in all types of scams, particularly by e-mail and electronic devices. The perps include either a very nice carrot or a nasty stick. Turning off one’s power is a very nasty, and very effective, stick.

Generally, the scammer warns that the customer’s electric or other utility service will be disconnected if the customer fails to make an immediate payment – typically using a reloadable debit card or other non-traceable form of payment. Complicating matters, these scammers often employ authentic-seeming phone numbers, graphics, uniforms, and other materials.

And this summer, Tom Wheeler, Chairman of the Federal Communications Commission (FCC) formed a Robocall Strike Force committed to developing comprehensive solutions to prevent, detect, and filter unwanted scam communications. He called on industry leaders like AT&T, Microsoft, and Comcast to implement anti-scamming technologies. The United States is also working with other governments to identify and stop such groups, but that is dependent on the will of that government.

"Protecting customers from scams is a high priority for EEI and its member companies," said EEI President Tom Kuhn. "The inaugural Utilities United Against Scams Day will help to spread awareness of the suspicious behaviors and scams targeting customers. If customers ever are unsure about the authenticity of a caller or the identity of a [utility] service worker, it is important that they call their utilities directly to check on the status of their accounts."

All utility consumers need to be educated on how to recognize red flags and what to do. These are some of the signs a scam may be occurring:

- The supposed utility representative becomes angry and tells the customer his or her account is past due and service will be disconnected if a large payment is not made – usually within less than an hour.

- The caller instructs the customer to purchase a pre-paid debit or credit card – widely available at retail stores – then call him or her back supposedly to make a payment to their utility.

- The caller asks the customer for the prepaid card’s receipt number and PIN number, which grants instant access to the card’s funds.

But customers can protect themselves by understanding:

- Utilities will never ask or require a customer to purchase a prepaid debit card to avoid disconnection.

- Customers can make payments online, by phone, automatic bank draft, mail, or in person.

- Customers with delinquent accounts receive an advance disconnection notification included with their regular monthly bill – never a single notification shortly before disconnection.

- If you suspect someone is trying to scam you, hang up and call the local police then your utility. Never dial the phone number the scammers provide.

If you suspect you or someone else has been the victim of fraud, or who feel threatened during contact with one of these scammers, immediately contact local authorities and then the utility itself. The Federal Trade Commission’s website is also a good source of information about how you can protect your personal information.

Dr. James Conca is an expert on energy, nuclear and dirty bombs, a planetary geologist, and a professional speaker. Follow him on Twitter @jimconca and see his book at Amazon.com